https://www.taxtmi.com/forum/issue?id=119683 A payment made under the correct tax act but an incorrect minor head in DRC-03 cannot be set off against an outstanding DRC-07 demand; the system will not refund the misallocated payment while the demand (tax, interest and penalty) remains unextinguished. The recommended course is to refile the challan under the correct minor head and then apply for a waiver; however, refunds will generally be processed only after full extinguishment or adjudication of the waiver application, making immediate refund impractical. en-us Thu, 06 Mar 2025 13:41:32 +0530 Thu, 06 Mar 2025 21:11:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119683 A payment made under the correct tax act but an incorrect minor head in DRC-03 cannot be set off against an outstanding DRC-07 demand; the system will not refund the misallocated payment while the demand (tax, interest and penalty) remains unextinguished. The recommended course is to refile the challan under the correct minor head and then apply for a waiver; however, refunds will generally be processed only after full extinguishment or adjudication of the waiver application, making immediate refund impractical. Discussion-Forum GST Thu, 06 Mar 2025 13:41:32 +0530 https://www.taxtmi.com/forum/issue?id=119683